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What We Offer
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*Alternative Rate-of-Tax Exemption for Manufacturing
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*Business Personal Property Tax Incentive
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*Private Activity Bonds
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*Rapid Response Team
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*Retail Enhancement Program
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*Section 108 Loans
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Business Resources
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International Trade
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P.O. Box 1575 Mail Code 640
30 S Nevada Avenue, Suite 604
Colorado Springs, CO 80903
Phone: 719-385-5955
Fax: 719-385-5475
Email: EconDevMain@spring. . .





City of Colorado Springs / Economic Vitality / What We Offer / Alternative Rate-of-Tax Exemption for Manufacturing

Alternative Rate-of-Tax Exemption for Manufacturing

Alternative Rate of Tax on Machinery or Equipment

The alternative rate of tax on machinery or equipment incentive provides a sliding scale of decreasing taxation on large purchases of manufacturing equipment.  Companies that invest over $5 million in a calendar year on qualified manufacturing machinery or equipment are eligible to participate in this program. 

As purchase amounts increase, the amount of the 2% City sales tax that the company has to pay decreases on a sliding scale.  On purchases in excess of $20 million in a calendar year, the entire 2% City sales tax is returned to the company as an incentive. 

 

Qualified Purchase Amounts

Rate of Tax

Purchases of $0.01 to and including $4,999,999.99

2.5 percent

Purchases of $5,000,000.00 to and including $7,500,000.00

2 percent

Purchases of $7,500,000.01 to and including  $10,000,000. 00

1 1/2 percent

Purchases of $10,000,000.01 to and including $15,000,000.00

1 percent

Purchases of $15,000,000.01 to and including $20,000,000.00

0.5 percent

Purchases in excess of $20,000,000.00

No tax

 

 

 

 

 

 

 

 

 

 

City Business Development Division staff:

- writes the Economic Development Agreement between the company and the City, which includes the alternative tax rate on machinery or equipment incentive component

- partners with City Revenue and Collections staff to obtain the annual incentive amount for which each company is eligible

- prepares required forms and supporting documentation to City Finance staff to ensure company receives annual incentive check